Dakota Mining Company pays its bills and employees with checks drawn on a bank from another part of the country.Checks usually take about three days to clear the firm's account._____ is the advantage gained during the check-clearing time.

Question

Quizplus · Accepted Answer

The advantage gained during the check-clearing time is known as "Float." This refers to the time period between when a check is issued and when it is cleared and the funds are deducted from the issuer's account, allowing the issuer to earn interest or benefit from the use of those funds during the interim.

Dakota Mining Company Pays Its Bills and Employees with Checks